Friday, August 30, 2019

Consumer spending surges in July and low inflation paves way for Fed to cut rates

MarketWatch
Americans boosted spending in July on recreational goods and vehicles as well as energy to run their air conditioners, but inflation remained low enough to give the Federal Reserve room to cut interest rates next month.

Consumer spending jumped 0.6% last month, the government said Friday, matching the MarketWatch forecast.

Incomes rose just 0.1%, however, marking the smallest gain in nearly a year. Americans had to dip into their savings to cover their expenses.. . . more